Financial reporting for cryptocurrency

Abstract This study compares and contrasts US international accounting financial reporting practices for cryptocurrency. We analyze the statements of 40 global companies that have exposure to cryptocurrencies, including cryptocurrency purchases, mining, payments, trading, investments in ICOs early-stage blockchain ventures. document inconsistency between Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS), as well distortions can mislead users assessing asset value, liquidity, profitability, cash-generating abilities across firms. In particular, firms receiving cryptocurrencies revenue-generating activities account intangibles using different measurement bases classify associated cash inflows differently. Some place usual long-term location intangibles, while others consider liquid, short-term assets. Limited guidance about crypto-assets from both IFRS GAAP lets choose which existing standard apply how it. Understanding valuation implications these new virtual assets is vital future research professional practice.